Bank Statement Loans for Self-Employed Borrowers
A bank statement loan is a mortgage that uses eligible personal or business bank statements to evaluate self-employment income instead of relying on tax returns for that income.
Discuss your self-employed mortgage options →Tell us about your business and financing goals.
For borrowers who work for themselves.
If you own a business, freelance, or earn self-employment income, a bank-statement approach may offer another way to document your income for a mortgage.
This approach may be especially helpful if you write off substantial business expenses on your tax returns. Those deductions can reduce the qualifying income used for a conventional mortgage, which generally relies on tax returns to evaluate self-employment income. A bank-statement program may offer another way to evaluate your business income using eligible deposits, with an allowance for business expenses.
Conventional financing may still be worth considering. Your loan officer can compare how income is evaluated under each approach. Explore conventional loans →
A useful starting point if you:
- Have an active business with documented ownership and operating history.
- Receive business revenue through personal or business bank accounts.
- Want to explore a home purchase or refinance.
- Need a loan officer to review a more complex income picture.
Bank Statement Program Highlights
- Loan amounts
- $100,000–$3 million on selected programs. Minimum and maximum loan amounts vary by program and scenario.
- Credit score
- As low as 550 on selected programs. Lower scores require substantially more down payment or equity and additional qualification requirements.
- Down payment
- As low as 10% on selected purchase programs with stronger credit and other qualification requirements. Other scenarios require more.
- Bank statements
- 12 or 24 consecutive months of eligible personal or business bank statements, subject to the selected method.
- Property types
- Selected programs consider single-family homes, 2–4 unit properties, and eligible condos or planned communities. Property and occupancy restrictions apply.
- Loan purposes
- Purchase, rate-and-term refinance, and cash-out refinance options; primary residences, second homes, and investment properties on selected programs.
- Rate structure
- Fixed and ARM options may be available, depending on the selected program.
- Interest-only
- Available on selected programs.
- Amortization
- Selected programs offer 30- or 40-year repayment structures. Terms depend on the program and payment type.
Rate and repayment structures vary by program and may have different qualification requirements. ARM rates and payments can change after the initial fixed period. Interest-only payments do not reduce principal during the interest-only period; payments can increase substantially when principal repayment begins. These features reflect different programs and may not be available together. The lowest credit score, smallest down payment, and maximum loan amount do not describe a single qualifying scenario. Available loan amounts, down payments, credit score requirements, and other terms depend on the lender, property, occupancy, and complete borrower scenario. All loans are subject to underwriting and program availability.
Bank deposits are the starting point, not the final income figure.
The lender evaluates eligible deposits and applies the selected program’s rules for expenses, transfers, and business ownership. A bank-statement loan still requires credit, asset, property, and repayment-capacity review.
Bank Statement programs evaluate self-employment income. DSCR programs focus on a rental property’s income. Your loan officer can help you compare the approaches when you are financing an investment property.
Explore DSCR financing →Financing for your next move.
Buy a home
Explore a primary residence or eligible second home using an alternative income-documentation method.
Refinance
Review rate-and-term or cash-out options for a property you already own.
Invest in a rental
Discuss investment-property options that qualify using your eligible business income.
Get ready for a useful conversation.
Your loan officer will confirm the documents needed. Useful items to have available include:
- Complete bank statements for the accounts receiving your business income.
- Business ownership and operating-history records.
- Records explaining large deposits or transfers.
- Your property plans, down payment or equity, and financing goals.
Additional income, asset, or business-expense documentation may be requested.
States Where We Can Help
Explore Bank Statement financing with PMF in Michigan, California, and Florida.
Program availability and terms depend on your property and complete scenario.
Bank Statement Loan FAQs
Can I qualify if business write-offs reduce my taxable income?
Possibly. Bank-statement programs may offer another way to evaluate self-employment income when tax returns do not reflect your business cash flow. Business expenses still matter. A PMF loan officer can help you compare your options.
How is my qualifying income calculated?
Eligible deposits are reviewed over the statement period, with adjustments for business expenses and your ownership share where applicable. Your qualifying income may be lower than your total deposits. Reach out for a review of your accounts.
Does every deposit count as income?
No. Moving the same money between accounts does not create additional income. Eligible transfers from a business account to a personal account may count under certain methods; transfers between personal accounts do not count as new income under these methods. We can review your deposits and any supporting records needed.
Can I use 12 months instead of 24 months of statements?
Selected programs allow 12 or 24 consecutive months. That is the statement period, not the required time in business. Let us review your business history and documentation options.
Can I use personal or business bank statements?
Either may be an option. The method depends on how your business receives income and pays expenses. Personal and business records may both be requested, but the same income cannot be counted twice.
Do I still need tax returns or help from my accountant?
Bank statements may be used to document eligible self-employment income instead of tax returns. Business records or an expense statement from a qualified tax professional may still be needed. Ask your loan officer which documents the selected method requires.
Are rates and costs different from a conventional loan?
They can be. Your documentation method and complete scenario affect the available terms. Contact PMF to compare the rate, APR, fees, cash needed, and payment structure.
How should I prepare my accounts before applying?
Keep complete statements and records explaining large or unusual deposits and transfers. Before moving business funds for a down payment, ask your loan officer what documentation may be needed.
How long do I need to be self-employed?
Business history, ownership, and access to earnings must meet the selected program’s requirements. Tell us about your business structure and experience so we can review your options.
Can I buy a primary residence, second home, or investment property?
Yes. Selected programs support all three, with different requirements. Reach out to discuss the property you have in mind.
Can a co-borrower have a salaried job?
Yes, selected programs allow wage income alongside bank-statement income. We can review how your household income may work together.
Can I refinance or take cash out?
Yes. Available options depend on your equity and complete scenario. Contact us to discuss how much you may be able to access.
Can I qualify as a first-time homebuyer?
First-time homebuyer eligibility depends on the selected program, property use, and payment structure. A PMF loan officer can review the options for your first purchase.
Do all of these features apply to every loan?
No. The highlights describe several program options. Available features and requirements depend on your complete scenario. Let us review which combination may fit.
What happens after I submit my scenario?
A licensed PMF loan officer will review your goals and discuss possible options and next steps. An inquiry is not a loan approval.
Let's take a look at your scenario.
Share your business background and what you want to accomplish.
Discuss your self-employed mortgage options →Program availability and terms depend on your complete scenario and underwriting. This is not a commitment to lend. An inquiry is not an approval.